Union Budget 2013-14 : key points for women empowerment

Promise to women : 

To stand in solidarity with girls, children and women and pledge to do everything possible to empower them and to keep them safe and secure.

 INR 1000 crore 'Nirbhaya Fund' for women's empowerment and safety:

About Nirbhaya Fund:

 It's a fund for women safety.The fund has been announced in memory of the young woman, who passed away at a Singapore hospital on December 29 last year, two weeks after she had been brutally gang-raped in a moving bus in New Delhi. As the media is not allowed to name a rape victim, the young woman who fought those who assaulted her on  Dec 16 was referred to as "Nirbhaya" (fearless one) and "Damini" (lightning) by sections of the press. The ministry of women and child development has been requested to plan the structure, scope and application of this fund. 

The present honorable union minister of  women and child development: Smt. Krishna Tirath (Minister of State- MoS)

Proposal to set up India's first women bank:

Mr. P. Chidambaram has proposed in the union budget to set up India's first all-women public sector bank and provision of Rs.1,000 crore as the initial capital. It is probable to obtain necessary approvals and the banking license by Oct 2013 for such bank.

Importance and role :

• The bank will employ and lend to women.
• Men, however, can deposit in the bank.
• Encourage women to build assets by providing micro-loans, finance a variety of asset-building enterprises including start up business and training.
• Provide loans to finance healthcare costs, marriages, children's education, and housing.
• Loans to self-help groups formed by self-employed women such as vegetable vendors, milk sellers, and weavers and also to women employed in agriculture, handicrafts, village art and crafts.
• .It is a very significant  step as women form over 48% of population of India and this step will address the problems of gender bias, denial of opportunities to women entrepreneurship and make them self-employed. It will cause a multiplier effect, a positive repercussion effect in the Indian Economy.

Existing important women's cooperative banks in India:

1. Shri Mahila SEWA Sahakari Bank Ltd. - SEWA (Self Employed Women's Association) Bank - Ahmedabad, Gujarat.
2. Mann Deshi Mahila Bank, Maharashtra.

Aftermath of union budget:

• Bangalore headquartered PSB, Canara Bank (CMD : R.K.Dubey) is planning to  open 10 all-women employee branches across the country. The bank is also launching 'annual award scheme' for successful women entrepreneurs.
• Bangalore headquartered PSB, Vijaya Bank (CMD: H.S.Upendra Kamath) is planning to open three all women branches in Delhi, Mumbai and Bangalore.

PSBs led by women at present:

1. Bank of India CMD -  Smt. Vijayalakshmi R. Iyer
2. Allahabad Bank CMD - Shubhalakshmi Panse

The Union Budget 2013-14 highlights (important parts for bank interviews)

Union Finance Minister Mr. Palaniappan Chidambaram presented the union budget 2013-14 on Feb 28, 2013. The key information and sets of data are as follows:

• Aim: To achieve higher growth rate and inclusive, sustainable development

• The global economic growth has been 3.2% in 2012.

• Fiscal deficit, current account deficit,inflation are the three main concerns.

Fiscal  deficit:

• Dr. Vijay Kelkar Committee recommendations: fiscal consolidation-

             -----  targeted fiscal deficit 5.3% GDP in 2012-13

             -----  targeted fiscal deficit 4.8% GDP in 2013-14

             -----  targeted fiscal deficit 3.0% GDP in 2016-17

• Fiscal deficit for the current year contained at 5.2% of GDP.

• Revenue deficit for the current year : 3.9% of GDP.

• Targeted revenue deficit for 2013-14: 3.3% of GDP.

• Targeted revenue deficit for 2016-17: 1.5% of GDP.

Current Account Deficit (CAD):  FII(Foreign Institutional Investment), FDI(Foreign Direct Investment), ECB (External Commercial Borrowing) are 3 main sources of CAD financing.

Direct Tax: No revision in slabs and rates for income tax.

Income tax slab for general and female tax payers:

• Yearly income: 0-2 Lakh -                       0%

• Yearly income: 2-5 Lakh -                      10%

• Yearly income: 5-10 Lakh -                    20%

• Yearly income: above 10 Lakh-              30% 

Income tax slab for senior citizens (60-80 years of age):

• Yearly income: 0- 2.5 Lakh -                 0%

• Yearly income: 2.5- 5 Lakh -                 10%

• Yearly income: 5- 10 Lakh -                  20%

• Yearly income: above 10 Lakh-             30% 

Income tax slab for very senior citizens (80 and above years of age):

• Yearly income: 0-5 Lakh -                       0%

• Yearly income: 5-10 Lakh -                    20%

• Yearly income: above 10 Lakh-              30% 

1.     A tax credit of INR 2000 to every person of annual income of INR 5 lakh

2.     To increase revenue earning, surcharge of 10% on taxable annual income exceeding INR 1 crore.

3.     Education cess : 3%

4.     Modified GAAR will come into effect from 1st April, 2016.

Indirect Tax:

• excise duty: 12%

• service tax: 12%

• customs duty for non-agricultural product: 10%

Other Highlights:

1.     Capital infusion of INR 14000 crore in public sector banks.

2.     First home loan up to INR 25 lakh from bank or a housing finance corporation entitled to additional deduction of interest up to INR 1 lakh.

3.     Direct Benefit Transfer Scheme.

4.     INR 1000 crore 'Nirbhaya Fund' for women's empowerment and safety.

5.     Proposal to setup first women's bank.

6.     Rajiv Gandhi Equity Savings Scheme to be liberalized for promoting savings in household sector.